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New Strategy for Crypto Traders Struggling with Stop-Loss: Pair Cutting


Dear crypto traders, facing market volatility and dealing with unrealized loss positions is always a significant challenge. The “pair cutting” strategy introduced here is an effective way to address this issue.

Basic Concept of Pair Cutting

Pair cutting is a strategy that minimizes overall losses by simultaneously selling a position with unrealized losses and another position with unrealized gains to offset the profit and loss. This method is particularly effective for traders who deal with multiple cryptocurrencies within their portfolio.

Benefits of Pair Cutting

Balancing Profit and Loss

By skillfully combining unrealized losses and gains, you can reduce the overall loss of your portfolio.

Reducing Mental Burden

Instead of accepting losses, effectively managing profit and loss can reduce stress for traders.

Efficient Use of Capital

It provides an opportunity to process assets that are experiencing losses and reallocate capital to more promising investments.

Precautions When Implementing

Tax Implications

Offsetting gains and losses may affect tax calculations, so it is advisable to consult with a tax professional before selling.

Market Trends

It is necessary to carefully monitor market movements and determine the timing of sales.

Portfolio Balance

When performing pair cutting, it is important to consider the overall balance of the portfolio and take actions that align with the long-term investment strategy.


Pair cutting is a powerful strategy for managing risk and effectively curbing losses in cryptocurrency trading. However, when using this strategy, it is crucial to consider tax implications, market trends, and maintain the overall balance of the portfolio. While keeping losses in check, keep your long-term investment strategy in mind and strive to make wise trades.